Lawmakers Introduce Bills to Address Concerns Over Crypto Mining in Rural Arkansas

Lawmakers in Arkansas are taking action to address the growing concerns surrounding crypto mining in rural communities. On the first day of the fiscal session, multiple bills were filed to regulate the industry that has been causing noise disturbances and straining local resources.

Last year, the Arkansas Data Centers Act of 2023 was passed, preventing local governments from implementing noise and zoning ordinances specifically targeting crypto mines. However, many lawmakers now regret their decision, as the industry has continued to cause disruptions in rural areas.

Crypto mining involves the use of large amounts of electricity and water to power and cool computers that mine for digital assets. The noise from the cooling fans has been a major complaint from residents living near these facilities.

Three groups of lawmakers have introduced resolutions to address the issue during the fiscal session. Senator Joshua Bryant filed Senate Resolution 5, aiming to establish state standards for crypto mines to reduce noise and limit ownership by foreign entities. Bryant’s proposal would also give back local control to counties by repealing part of the Arkansas Data Centers Act.

Senator Missy Irvin introduced Senate Resolution 17, which would set decibel limits for crypto mines and businesses utilizing blockchain technology. Irvin emphasized the need for a state-level standard to regulate the industry effectively.

Faulkner County has been a focal point of concerns, with residents suing a crypto mine company over noise disturbances. Irvin’s bill would require crypto mine owners to be licensed by the Arkansas Department of Energy and Environment and ban water cooling for future facilities.

Senator Bryan King filed multiple resolutions addressing issues such as excessive power usage and licensing requirements for crypto mines. King expressed concerns about the industry benefiting foreign countries more than Arkansas.

Other resolutions include imposing fees on high energy usage, banning products from certain countries, and monitoring water and electricity usage by crypto mines. The proposed legislation aims to provide a comprehensive regulatory framework for the crypto mining industry in Arkansas.

Overall, lawmakers are working towards finding a balance between regulating crypto mining operations and addressing the concerns of rural communities affected by the industry’s activities.